Budget 2026: Infra Capex Soars to ₹12.2 Lakh Crore, Targets Urban Growth, Logistics
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CNBC TV1801-02-2026, 11:45

Budget 2026: Infra Capex Soars to ₹12.2 Lakh Crore, Targets Urban Growth, Logistics

  • Finance Minister Nirmala Sitharaman increased infrastructure capital expenditure by 8.9% to ₹12.2 lakh crore for FY26–27, up from ₹11.2 lakh crore in FY25–26.
  • The Budget focuses on building urban and logistics infrastructure in Tier I and Tier II cities, aiming to de-risk private participation in large projects.
  • A new Infrastructure Risk Guarantee Fund is proposed to provide partial credit guarantees to lenders, strengthening confidence for private developers.
  • New dedicated freight corridors, including an east–west corridor from Dankuni to Surat, and 20 new national waterways will be operationalized to green freight movement and ease logistics.
  • The Budget introduces City Economic Regions (CERs) with ₹5,000 crore allocation per CER and plans seven high-speed rail corridors to boost urban development and connectivity.

Why It Matters: Budget 2026 significantly boosts infra spending, focusing on urban growth, logistics efficiency, and de-risking private investment.

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